Stocks in Asia resumed their decline today after a proposed US stimulus package did little to soothe fears.
Stock markets in Japan, South Korea, Hong Kong and Australia nursed losses of between 1.7 and 2.7 per cent, dragged lower by banks and financial companies as the sector continues to suffer the worst fallout of the US subprime mortgage crisis.
Tokyo shed more than 3 per cent, the dollar stayed within striking distance of a near three-year low against the yen, and Japanese government bond futures rose to a two-year peak as investors sought a safe haven.
Last week President George W. Bush called for package of tax cuts and other measures of around $140 billion to $150 billion to shore up the US economy, battered by the subprime mortgage crisis and subsequent credit crunch.
But the move did little to shore up sentiment in stock markets.
Tokyo's benchmark Nikkei has shed a quarter of its value since July, when concerns that the US subprime mortgage crisis would permeate global financial markets first reared their head.
In Seoul worries over the health of the United States - a top export market - hit stocks like flat screen maker LG.Philips. The benchmark Korea Composite Stock Price Index was down 1.3 per cent.